The Increasing Values of 3 Bedroom Condos in South of Fifth
As we recently launched our new sister-site ContinuumExpert.com, which focuses on Continuum South Beach and the South of Fifth area, we have noticed that the value of large, 3+ bedroom units is increasing. For those who are sitting in a 3 bedroom residence thinking whether now is a good moment to sell?; the answer is YES.
Unit 3501 in the North Tower of Continuum, a large 3 bedroom unit sold for $3,069 per SF ($9.3M) just 47 days after being listed
Increased demand for large, 3 bedroom condos
Now the summer months have passed and sales is picking up we see increased buyer’s confidence and more and more families are looking at the South of Fifth area.
The table below shows the sales of 3 bedroom units in South of Fifth as a percentage of the total sales in that specific year. It becomes clear that 2017 and 2018 are showing a significant increase in percentage. We already reported this trend earlier this year (May of 2018) when we noticed an increased demand for large units at Continuum, resulting in an increase in prices. It seems however, that this is a new trend in the entire South of Fifth area.
It is important to know why so many buyers are suddenly attracted to these large units. Our Miami Beach expert Stefania Cambarau noticed more and more people are looking for a primary residence in the area. While Miami used to be merely a holiday destination or a good place to invest, the city is now very attractive for families or individuals to make it their primary residence.
Another very important aspect is the increased relocation to Miami from predominantly the Northeastern parts of the United States. High-tax state residents are “fleeing” down south to get more quality of life and keep more money in their pockets. We just guided the move of a global $7B company and we are confident this will happen more often in the future. High Net Worth Individuals who can basically live and work from everywhere in the world have indicated a clear interest in Miami and are looking for large units in South of Fifth that they can “Lock Up and Leave” whenever they feel like it. As Miami is still a rather affordable city compared to for example NYC, the price per SF allows these buyers to get a larger unit with amazing views over the water.
The Increased Value of 3 Bedroom units in South of Fifth
Looking at the table below, you can see that the value of 3 bedroom units has increased considerably over the last years, now even surpassing the prices per SF of Miami’s peak years (2014/2015). The largest surge happened between 2017 and 2018.